Deutsche Bank hosted Martin Viecha at their AutoTech Conference this week, during which it was confirmed that Tesla will launch a monthly subscription to its Full Self-Driving (FSD) software. An important detail of this offering was also made public: the subscription option will potentially be split into several levels for different functions.
Along with the beginning of the beta testing of FSD in October, Tesla raised the price of FSD to $10,000. This is a significant amount, and not everyone is able or willing to pay for it as an additional cost to their car. Apparently, this is why the company has developed a plan to make FSD available to a wider customer base.
On October 23, Tesla CEO Elon Musk tweeted that the rewritten FSD will become available as a monthly subscription sometime in 2021. This is, of course, incredibly exciting for some owners who don’t want to outright buy FSD.
Price change is pushed to Thursday next week. Applies only to US for now. One week clock will start in other countries as beta is released. FSD monthly rental will also be available sometime next year.— Elon Musk (@elonmusk) October 22, 2020
However, another unique and very interesting detail has become known. After the meeting, Deutsche Bank wrote:
“Full self-driving beta testing continues and Tesla is making improvements with each release. Longer term, as the price of the FSD increases, the company is planning to launch some type of subscription option next year. Although it would not provide details, it could envision the subscription service layering in several tiers of pricing to account for different use cases such as highway pilot only or full robo-taxi mode.”
In fact, after the launch of this program, FSD, in one form or another, will become available to a wider range of Tesla owners. In addition to Tesla owners, this service can also be used by those who rent a car, especially those who will use it for a long time.
This monthly subscription option could lower the financial threshold for use of Tesla FSD, opening up an even broader pool of potential customers. Meanwhile, an increasing number of FSD users would in turn help to bring in even more real data for the future development of FSD. A win-win
Check out the Tesla Daily video below for more details.